Bitcoin is the first cryptocurrency that has ever been known to man. It came about in 2009 and since then there has been no looking back for cryptocurrencies in general. In flowed a huge influx of other cryptocurrencies and to date there are over 1000 cryptocurrencies in the market. Despite so many digital currency flooding the market, Bitcoin has remained at the top and looks like it is going to be at the top in years to come.
Bitcoin is known as a digital currency that came in retaliation to the Great Depression of 2008 when a huge financial crisis engulfed the global community as a whole. It was then designed to be a substitute financial system that was conceived to replace the fiat currency and its fallacies. But to date, it has not been able to replace the fiat currencies of various countries because the latter is issued by monetary authorities and has been in place for a long.
Yet one can argue that Bitcoin still is one of the most important cryptocurrencies despite not being able to replace fiat currencies. Why is it so? There have to be certain causes for its value to be so high.
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Bitcoin Remains The Top Cryptocurrency – Here’s Why
You all know by now that Bitcoin does not have the support of any government though they have not banned them from their countries except China. It also does not have any central authority to control over it and make regulations to limit it yet it is functioning smoothly and very slowly gaining popularity.
One of the most probable reasons for its success is that it is the first crypto to have a decentralized mode of functioning. Nobody can pull you up for your investments nor do you owe your allegiance to anyone here. With such a situation reigning supreme users tend to become satisfied.
Thus, Bitcoinwas welcomed as a fresh change for all. A decentralized network means everyone who is involved with the system is in charge of the whole procedure. It works on a consensus mode. But the dark side of it is that when there are frauds involved there is no one that you can report to or ask for help.
They cannot be counterfeited is also why it has become so popular. They cannot be defrauded from you unless someone has access to your account utilizing leaked private keys. But this is possible with banks. And it is also a scarce thing like gold so naturally, it is highly valued. As soon as the fixed 21 million Bitcoins have been mined they will run out of stock. Something which is so scarce will always have a high value. This scarcity aspect gives Bitcoins their all-time high value.
Bitcoins can be divided into small units up to eight decimal places which is not possible with fiat currencies that can be divided only up to two decimal places. So even if its price rises you can still use it with tiny amounts for your everyday use.
Bitcoins have a high cost of production in terms of lots of electrical energy being consumed in their mining. This makes the item a very valuable one. A commodity that has a high production cost is always valuable.
The utility factor of Bitcoin gives it a high value. And the utility factor of Bitcoins is based on its cost of transaction which is very low in comparison to the fiat currencies that are used for the purpose. Another utility factor is the transaction time which is like lightning. Bitcoin transactions can be made even to the other side of the earth in a time that is not even imaginable. It does not take the number of days that it would take with fiat currencies. These factors all give Bitcoins their value and make them the most important cryptocurrency.
Before ending it must be mentioned here that Bitcoins are among the most popular because they can easily be traded on several platforms like bitiq.org. You will face no difficulty in trading so it becomes an acceptable form of investment for many.